Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
NOTICE OF ANNUAL GENERAL MEETING
13th ANNUAL GENERAL MEETING of the
Australian & New Zealand Association of Neurologists Education & Research Foundation
To be held Grand Ballroom A
Sydney Hilton at 8.00 am
A G E N D A 1. Welcome
2. Minutes of previous meeting
3. Matters arising from Minutes
4. Chairman’s Report
5. Treasurer’s Report and adoption of Financial Report
year ended 28 February 2013
6. Other Business
7. Date of next AGM
NB: Agenda papers are available from ANZAN website: www.anzan.org.au or on request from the Secretariat 02 9256 5443 or [email protected] Alan Barber Honorary Secretary 16 April 2013
MINUTES OF THE 12th ANNUAL GENERAL MEETING OF THE AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS
EDUCATION AND RESEARCH FOUNDATION HELD AT 8.00AM ON WEDNESDAY 6 JUNE 2012 AT MELBOURNE CONVENTION & EXHIBITION CENTRE
PRESENT: Caroline Airey Colin Andrews John Archer Monica Badve Alan Barber Sam Berkovic Jeff Blackie Andrew Bleasel Stefan Blum Karen Boundy Simon Broadley Jim Burrow Keith Burton Bruce Campbell William Carroll Andrew Chancellor Victor Chong Malcol Clark Craig Costello Steve Davis Bruce Day Timothy Day Helen Dewey Geoffrey Donovan Andrew Duggins Richard Frith Peter Gates Richard Gerraty James Gordon Sasson Gubbay Simon Hammond Graeme Hammond-‐Tooke Peter Hand Michael Hayes Geoffrey Herkes Susan Ho
Robert Iansec Jerome Ip Matthew Kiernan Lyn Kiers Michelle Kiley Thomas Kimber John King Johan Kuyler James Lance Campbell Le Heron Christina Liang Andre Loiselle Christian Lueck Richanrd Macdonell Pam McCombe Elizabeth McCusker Armin Mohamed Mark Newton John O’Gorman Gregory Olrich John O’Neill Kaitlyn Parratt Craig Presgrave Grant Purdie Barry Snow Ernest Somerville Penelope Spring Christopher Staples Richard Stark Elsdon Storey Carolyn Sue Graeme Symington Bruce Tomlinson Roger Tuck Ravindra Urkude Anneke Van Der Walt
Steve Vucic Michael Walsh John Waterston Nyhnt (Eddie) Win Andrew Wong Chong Wong
Bernard Yan Nawaf Yassi
APOLOGIES: Arun Aggarwal Michael Alpers David Burke Rick Burns John Dunne Jane Frith Victor Fung Simon Harvey Dan McLaughlin Jim McLeod Jayantha Rupasinghe Monique Ryan Johathan Sturm Philip Thompson John Waterston
1. Welcome The Chairman opened the meeting at 8.00am
2. Minutes of previous meeting The minutes of the Annual General Meeting held 17th May 2011 were taken as read and signed as correct.
Acceptance of the minutes:
Moved: Rob Henderson Seconded: Geoff Herkes
3. Matters Arising from Minutes
No matters
4. Chairman’s Report of next AGM The Chairman informed members that he was pleased to report the Foundation was in a very good financial position, noting that Treasurer, Michelle Kiley, would provide a detailed report to members.
5. Treasurer’s Report and adoption of Financial Report year ended 28 February 2012
The Treasurer referred members to her report circulated with the Agenda papers: Members are reminded that the ANZAN E&RF financial year is March to February. Bell Partners are the investment advisors for ANZAN E&RF at this time. In keeping with due corporate governance however, the position of ANZAN E&RF financial advisor has recently been tendered; tenders have now been received and are currently being reviewed by the executive. The value of the investment portfolio at 29 February 2012 was $1,886,299. This compares with $1,630,874 on 28th February 2011. Members are reminded that over the course of the financial year a total of $215,000 was transferred from the ERF cheque account (matured debentures and cash) to the investment portfolio. At the time of reporting at the AGM in May 2011, the value of the portfolio was $1,854,282. The current value of our portfolio, as at 11th May 2012 is $1,912,320. An additional $4,927 is held in a cheque account (i.e. outside of Bell portfolio). Additional monies transferred in to the cheque account (from the ANZAN cheque account) over the last financial year include the Bayer Schering sponsorship for ANZAN Asia Pacific Affairs fellowship to the value of $55,000 (inclusive of GST) and a final reconciliation from a WCN sponsorship 2005 to the value of $55,000 (inclusive of GST). Growth of the investment portfolio has been modest (+2.62%) over the last 12 months. This compares with -‐6.20% for the S&P/ASX all ords accumulation index. Members are reminded that our investment strategy is conservative to protect the foundation’s assets. In August 2011 there was a shift of 10% of our asset allocation from fixed interest investments in to Australian shares, to take advantage of the opportunities in the market at that time. This shifted the portfolio from an overweighted defensive style portfolio to a more neutral position defensive portfolio of around 60% defensive assets and 40% growth assets. This provided a modest favourable return in the last half of 2011. In keeping with the recent run up in the Australian share market we have recently reduced our weight in that asset class slightly and have moved some monies in to corporate bonds. The structure of the current portfolio is as listed below.
Asset Current Allocation
Recommended Allocation
Cash & Term Deposits 25% 25% iShares MSCI Australia 200 ETF (IOZ) 25% 20% Fairview Emerging Companies Fund 10% 5% Vanguard Australian Properties Securities Index ETF (VAP)
5% 5%
Schroder Credit Securities Fund 17.5% 27.5% Vanguard (W'sale) Aus Fixed Interest Index Fund
17.5% 17.5%
Points of discussion amongst council and the executive over the last 12 months relating to this foundation have been two fold. The first has been the timing and nature of distributing funds for research. It was decided by the executive and endorsed by council at our August 2011 Council meeting to defer any further action on this front at this time of relative market volatility. Also, as the running expenses for ANZAN have been increasing in recent years, the previous strategy of transferring funds from ANZAN to the ERF over the longer term is less likely to be sustainable, however this will be continued to be reviewed on an annual basis. In the mean time this foundation continues to distribute funds for the ANZAN Young Investigator Awards, Travel Grants for the Overseas Training Positions, the Leonard Cox Award and ANZAN Asia Pacific Affairs Fellowship (total value $117,000 in 2011-‐12). In addition it provides the salary for the Brain School Coordinator ($20,000 per annum). Other expenses incurred by the foundation include audit and accountancy fees ($2,400) and investment advisor fees ($16,708). A comprehensive financial report is available from the Association Secretariat or via the members’ portal on the ANZAN website. Members are reminded that we have been informed of a substantial bequest to the ANZANERF, subject to the life interest of a friend of the deceased. Dr M Kiley May 2012 The President thanked the Treasurer.
Richard Frith moved Peter Hand seconded
6. Other Business There being no further business the meeting concluded at 8.10am.
Australian and New Zealand Association of Neurologists Education and Research Foundation Treasurer’s Report May 2013 Members are reminded that the ANZAN E&RF financial year is the same as ANZAN’s financial year, i.e. March to February. The position of investment advisor for ANZAN E&RF was tendered in June 2012. Three companies (Bell Partners, Morgan Stanley and UBS) were invited to submit tenders. At the completion of the process Morgan Stanley (MS) were the successful tenderer. Their success was based on our belief that they were able to provide very sound advice in keeping with our investment philosophy at very competitive costs. We also felt that their internal regulatory processes were superior to the other tenderers. Adam Griffiths is our new financial adviser and the treasurer continues to work closely with him. Mr Griffith’s recognises our intention to continue with an overall conservative approach to protect our assets, but also recognises the need for growth to support the Foundation’s activities. Currently the portfolio has an asset allocation of 66.2% in income assets (Cash – 8.5% and Australian Fixed Interest – 57.7%) and 33.8% in growth assets (Australian Shares 26.5% and Listed Property Trusts 7.3%). The transition of our investment portfolio was unavoidably protracted, but has now been completed. Our investment portfolio has continued to achieve growth over the last 12 months. Its current value is $2,535,427 (compared with $1,912,320 May 2012). This growth reflects not only investment returns, but a very generous bequest of $400,000 (which has now been transferred from our cash account to the investment platform), and a $40,000 donation from ANZAN. Redemptions that have been made over the last 6 months include Fairview Emerging Companies Fund ($100,000) (the reasoning is that this investment provides growth return not income and is currently costing 4.32% on the asset value of the investment), Schroder Credit Securities Fund ($400,000) (as the bond market is predicted to be near its peak) and Vanguard Australian Fixed Interest Fund ($100,000). We have been advised to retain Vanguard Australian Properties Securities Index ($80,482) as the commercial property market is expected to realise improved growth. We have recently increased the fixed interest security side of the portfolio with acquiring existing hybrid securities in ANZ preference shares ($50,173) and CBA Pearls ($50,576). We have also acquired $50,000 each of Westpac Capital Notes and NAB Convertible Preference shares through new public offerings. Share purchases over the last 6-9 months include Australian Leader’s Fund ($100,000), WAM Capital ($100,000) and Shopping Centres Australia ($80,000). Currently there is $1,052,699 invested in term Deposits throughout ANZ, National Bank, Westpac and Adelaide Bank at 90 day terms to maximise interest rate advantages.
Over the last 12 months the Foundation has distributed funds for the ANZAN Young Investigator Awards, Travel Grants for the Overseas Training Positions and the ANZAN Asia Pacific Affairs. In addition it provides the Brain School Co-ordinator salary. The issue of distributing funds for research is an ongoing point of discussion. It is the opinion of the outgoing executive and council that this is an important issue that must remain under review. Members are also reminded that we have been informed of a substantial bequest, subject to the life interest of a friend of the deceased. Dr M Kiley May 2013
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTSEDUCATION & RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
FINANCIAL REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2013
Page 6
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Revenue 2 601,900 206,210
Expenses (51,262) (161,373)
Profit before income tax 3 550,638 44,837
Income tax expense relating to ordinary activities 1 - -
Profit from operations after income tax 550,638 44,837
Net gain (loss) on revaluation of financial assets 59,056 (37,045)
Other comprehensive income for the year net of tax 59,056 (37,045)
Total comprehensive income for the year 609,694 7,792Total comprehensive income attributable to members ofthe entity 609,694 7,792
The accompanying notes form part of these financial statements
Page 7
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
BALANCE SHEETAS AT 28 FEBRUARY 2013
Note 2013 2012$ $
CURRENT ASSETSCash and cash equivalents 4 69,028 94,751Other current assets 5 596 6,735TOTAL CURRENT ASSETS 69,624 101,486
NON-CURRENT ASSETSFinancial assets 6 2,440,480 1,798,924TOTAL NON-CURRENT ASSETS 2,440,480 1,798,924TOTAL ASSETS 2,510,104 1,900,410
TOTAL LIABILITIES - -NET ASSETS 2,510,104 1,900,410
EQUITYReserves 7 86,213 27,157Accumulated Funds 8 2,423,891 1,873,253TOTAL EQUITY 2,510,104 1,900,410
The accompanying notes form part of these financial statements
Page 8
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 28 FEBRUARY 2013
Retained FinancialEarnings Asset
Reserve$ $
Balance 1 March 2009 1,738,421 (169,088)Profit for the 2010 year 89,995 -Revaluation increment (decrement) - 110,797
Balance as at 28 February 2010 1,828,416 64,202
Profit for the 2012 year 44,837 -Revaluation increment (decrement) - (37,045)Balance as at 28 February 2012 1,873,253 27,157
Profit for the 2013 year 550,638 -Revaluation increment (decrement) - 59,056
Balance as at 28 February 2013 2,423,891 86,213
The accompanying notes form part of these financial statements
Page 9
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
CASH FLOW STATEMENTAS AT 28 FEBRUARY 2013
Note 2013 2012$ $
Cash flows from operating activitiesReceipts from customers 532,497 192,657Interest received 33,088 13,721Payments to suppliers (58,261) (157,313)Tax (paid) received 6,999 1,205Net cash inflow (outflow) from operatingactivities 514,323 50,270
Cash flows from investing activitiesProceeds from sale of Investments 1,342,142 1,645,765Purchase of investments (1,882,188) (2,016,732)Net cash inflow (outflow) from investingactivities (540,046) (370,967)
Net decrease in cash held (25,723) (320,697)Cash at beginning of the year 94,751 415,448Cash at the end of the year 4 69,028 94,751
CASH FLOW INFORMATIONReconciliation of Cash Flow from operations with Profit from ordinary activities after income tax.
Profit from ordinary activities after income tax 550,638 44,837Non Cash items(Profit) Loss on sale of investments 42,455 5,265Changes in Assets and Liabilities:Decrease (increase) in receivables 6,140 168Net cash Provided by Operating Activities 514,323 50,270
Reconciliation of cashCash at the end of the financial year as shown in the statement of cash flow is reconciled to itemsin the statement of financial position as follows:
Cash at bank 69,028 97,751
(b) The company has no credit stand-by or financing facilities in place.(c) There were no non-cash financing or investing activities during the year
The accompanying notes form part of these financial statements
Page 10
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThis financial report is a general purpose financial report prepared in accordance with AustralianAccounting Standards, Australian Accounting Interpretations and other authoritativepronouncements of the Australian Accounting Standards Board and the requirements of theAssociation Incorporation Act (WA) 1987.
The financial report covers the Australian and New Zealand Association of NeurologistsEducation & Research Foundation Inc. as an individual entity. The Australian and New ZealandAssociation of Neurologists Education & Research Foundation Inc. is an association incorporatedin Western Australia under the Association Incorporation Act (WA) 1987.
The financial report has been prepared on an accruals basis and is based on historic costs anddoes not take into account changing money values, or except where specifically stated, currentvaluations of non-current assets. Cost is based on the fair values of the consideration given inexchange for assets.
The following is a summary of the material accounting policies adopted by the Foundation in thepreparation of the financial report. The accounting policies have been consistently applied, unlessotherwise stated.
Income TaxThe Foundation is exempt from income tax under Section 50-5 of the Income Tax AssessmentAct, 1997, as a non-profit Foundation established for the encouragement of science.
Cash and cash equivalentsFor the purposes of the Statement of Cash Flows, cash includes cash on hand, at banks and ondeposit.
Financial Instruments
Initial recognition and measurement
Financial assets, comprising trade and other receivables, cash and cash equivalents, financialassets and trade and other payables, are initially measured at fair value on trade date, whichincludes transaction costs, when the related contractual rights or obligations exist except wherethe instrument is classified at fair value through profit & loss in which case transaction costs areexpensed to profit & loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at either fair value, amortised cost using theeffective interest rate method or cost. Fair value represents the amount for which an asset couldbe exchanged or a liability settled, between knowledgeable, willing parties. Where available,quoted prices in an active market are used to determine fair value. In other circumstances,valuation techniques are adopted.
Amortised cost is calculated as:
1 the amount at which the financial asset or financial liability is measured at initial recognition
2 less principal repayments
3 plus or minus the cumulative amortisation of the difference, if any, between the amount initiallyrecognized and the maturity amount calculated using the effective interest method; and
4 less any reduction for impairment
Page 11
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The effective interest rate method is used to allocate interest income or interest expense over therelevant period and is equivalent to the rate that exactly discounts estimated future cash paymentsor receipts (including fees, transaction costs and other premiums or discounts) through theexpected life (or when this cannot be reliably predicted, the contractual term) of the financialinstrument to the net carrying amount of the financial asset or financial liability. Revisions toexpected future net cash flows will necessitate an adjustment to the carrying value with aconsequential recognition of an income or expense in profit or loss.
Financial assets at fair value through profit & loss
Financial assets are classified at fair value through profit or loss when they are held for trading forthe purpose of short term profit taking, or when they are derivatives not held for hedging purposes,or when they are designated as such to avoid an accounting mismatch or to enable performanceevaluation where a group of financial assets is managed by key management personnel on a fairvalue basis in accordance with a documented risk management strategy. Such assets aresubsequently measured at fair value with changes in carrying value included in profit or loss.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable paymentsthat are not quoted in an active market and are subsequently measured at amortised cost.
Available-for-sale financial assets
Available for sale assets are non-derivative financial assets that are either not capable of beingclassified into other categories of financial assets due to their nature, or they are designated assuch by management. They comprise investments in the equity of other entities where there isneither a fixed maturity nor determinable payments.
Held to maturity
These investments have fixed maturities, and it is the company’s intention to hold theseinvestments to maturity. Any held to maturity investments held by the company are stated atamortised cost using the effective interest rate method.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured atamortised cost.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuationtechniques are applied to determine the fair value for all unlisted securities, including recent arm’slength transactions, reference to similar instruments and option pricing models.
ImpairmentAt each reporting date, the board assesses whether there is objective evidence that a financialinstrument has been impaired. In the case of available-for-sale financial instruments, a prolongeddecline in the value of the instrument is considered to determine whether impairment has arisen.Impairment losses are recognised in the statement of comprehensive income.
Impairment of AssetsAt each reporting date, the board reviews the carrying values of it tangible and intangible assets todetermine whether there is any indication that those assets have been impaired. If such anindication exists, the recoverable amount of the asset, being the higher of the assets fair valueless cost to sell and value in use, is compared to the assets carrying value.
Any excess of the assets carrying value over its recoverable amount is expensed to the statementof comprehensive income.
Page 12
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
De-recognitionFinancial assets are de-recognised where the contractual right to receipt of cash flows expires orthe asset is transferred to another party whereby the entity no longer has any significantcontinuing involvement in the risks and benefits associated with the asset. Financial liabilities arede-recognised where the related obligations are either discharged, cancelled or expire.
The difference between the carrying value of the financial liability extinguished or transferred toanother party and their fair value of consideration paid, including the transfer of non-cash assets orliabilities assumed, is recognised in profit or loss.
Revenue
Interest revenue is recognised on a proportional basis taking into account the interest ratesapplicable to the investments.
Donations are recognised on a receipts basis.
Goods & Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where theamount of GST incurred is not recoverable from the Australian Taxation Office. In thesecircumstances the GST is recognised as part of the cost of acquisition of the asset or as part of anitem of expense. Receivables and payables in the Statement of Financial Position are showninclusive of GST.
Adoption of New and Revised Accounting StandardsDuring the current year, the Foundation has adopted all of the new and revised AustralianAccounting Standards and Interpretations applicable to its operations which became mandatory.
The adoption of these standards has impacted the recognition, measurement and disclosure ofcertain transactions. The following is an explanation of the impact the adoption of these Standardsand Interpretations has had on the financial statements of the Australian and New ZealandAssociation of Neurologists Research Foundation.
AASB 9: Financial Instruments (December 2010) and AASB 2010-7: Amendments to AustralianAccounting Standards arising from AASB 9 (December 2010) {AASB1,3,4,5,7,101,102,108,112,118,120,121,127,128,131,132,136,137,139,1023 & 1038 andInterpretations 2,5,10,12,19& 127} (applicable for annual reporting periods commencing on or after1 January 2013).
These Standards are applicable retrospectively and include revised requirements for theclassification and measurement of financial instruments, as well as recognition and de-recognitionrequirements for financial instruments.
The key changes made to accounting requirements include:
- simplifying the classification of financial assets into those carried at amortised cost and thosecarried at fair value;
- simplifying the requirements for embedded derivatives’;- removing the tainting rules associated with held-to-maturity assets;
- removing the requirements to separate and fair value embedded derivatives for financial assetscarried at amortised cost;
During the current year the company adopted all of the new and revised Australian AccountingStandards and Interpretations applicable to its operations which became mandatory.
Page 13
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The adoption of these standards has not impacted the recognition, measurement and disclosureof any transactions. The following is an explanation of the impact the adoption of these standardsand interpretations has had on the financial statements of the Australian & New ZealandAssociation of Neurologists Education & Research Foundation Inc. The company’s financialstatements now contain a statement of comprehensive income.
Other comprehensive income - The revised AASB 101 introduces the concept of ‘othercomprehensive income’ which comprises income and expenses that are not recognised in profit orloss as required by other Australian Accounting Standards. Items of other comprehensive incomeare to be disclosed in the statement of comprehensive income. Entities are required to disclosethe income tax relating to each component of other comprehensive income. The previous versionof AASB 101 did not contain an equivalent concept.
2 REVENUESDonations received 440,000 110,141Gain on sale of investments 42,455 -Interest received 33,088 7,332Portfolio income 86,357 88,738
601,900 206,211
3 PROFITProfit before income tax expense has beendetermined after:Charging as Expense:Audit & accountancy fees 2,635 2,400Awards 23,030 117,000Investment advisor fees 10,459 16,708Brain School fees 15,000 20,000Loss on disposal of Investments - 5,265
4 CASH & CASH EQUIVALENTSCash at bank 69,025 94,751
5 OTHER CURRENT ASSETSGST receivable 596 6,735
Credit riskThe Foundation has no significant concentration of credit risk with respect to any singlecounterparty or group of counterparties. The main source of credit risk to the Foundation isconsidered to relate to the class of assets described as advertising receivable.
The following table details the Foundation’s advertising receivable exposed to credit risk withageing analysis and impairment provided thereon. Amounts are considered as ‘past due’ whenthe debt has not been settled within the terms and conditions agreed between the Foundation andthe member counterparty to the transaction.
Page 14
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Receivables that are past due are assessed for impairment by ascertaining their willingness topay and are provided for where there are specific circumstances indicating that the debt may notbe fully repaid to the Foundation. The balances of receivables that remain within initial terms (asdetailed in the table) are considered to be of high credit quality.
2013 GrossAmount
Past due&impaired
Past due but not impaired(Days overdue)
Withininitialtrade
terms<30 31-60 61-90 >90
$ $ $ $ $ $ $Tradereceivables 596 - - 596 - - -Total 596 - - 596 - - -
2012 GrossAmount
Past due&impaired
Past due but not impaired(Days overdue)
Withininitialtrade
terms<30 31-60 61-90 >90
$ $ $ $ $ $ $Tradereceivables 6,735 - - 1,221 - 5,514 -Interestreceivable - - - - - - -Total 6,735 - - 1,221 - 5,514 -
Trade and other receivablesThe Foundation does not hold any financial assets whose terms have been renegotiated, butwhich would otherwise be past due or impaired.
Collateral held as securityNo collateral is held as security for any of the trade and other receivables.
Page 15
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Financial assets classified as loans and receivables
Trade and other receivables- total current 596 6,735
596 6,735
6 FINANCIAL ASSETSAvailable for sale financial assets 2,440,480 1,798,924
Available for sale financial assets comprise:
Bonds at fair value - 450,000Managed funds at fair value 2,440,480 1,348,924Total available-for-sale financial assets 2,440,480 1,798,924
7 RESERVESFinancial asset reserveBalance at beginning of the year 27,157 64,202Revaluation of financial assets to fair value 59,056 (37,045)Total available-for-sale financial assets 86,213 27,157
The financial asset reserve records revaluations of financial assets
8 ACCUMULATED FUNDSAccumulated funds at the beginning of the year 1,873,253 1,828,416Net profit attributable to members of thefoundation 550,638 44,837Accumulated funds at the end of the year 2,423,891 1,873,253
9 CHARITABLE FUNDRASING INFORMATIONTotal income received by the Foundation comprises fundraising income from other sources. Allincome received is applied towards the funding of medical research into neurological diseases.The following information on income and expenses of fundraising appeals is disclosed inaccordance with the requirements of the Best Practice Guidelines for charitable organisations.
Fundraising Comparisons by percentage % %Cost of fundraising to total income fromfundraising - -Surplus from fundraising to gross income fromfundraising 100 100Costs of fundraising services to totalexpenditure - -Costs of fundraising services to total incomereceived - -
Page 16
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Related party transactions
No Director member receives directly or indirectly any fees, bonuses or other remuneration as aconsequence of their appointment to the Board.
11. Financial instruments
Financial risk managementThe Foundation’s financial instruments consist mainly of deposits with banks, local money marketinstruments and short-term investments, accounts receivable and payable.
The Foundation does not have any derivative financial instruments at 28 February 2013.
Financial Risk Management PoliciesThe Director’s overall risk management strategy seeks to assist the Foundation in meeting itsfinancial targets, whilst minimising potential adverse effects on financial performance. Riskmanagement policies are approved and reviewed by the Directors’ on a regular basis.
The totals for each category of financial instruments, measured in accordance with AASB 139 asdetailed in the accounting policies to these financial statements, are as follows:
Financial assetsCash & cash equivalents 69,028 94,751Short term deposits - -Trade & other receivables 596 6,735
69,624 101,486Financial liabilitiesTrade & other payables - -
- -
i. Treasury risk managementA finance committee consisting of senior Board members meet on a regular basis toanalyse currency and interest rate exposure and to evaluate treasury managementstrategies in the context of the most recent economic conditions and forecasts.
ii. Financial risksThe main risks the Foundation is exposed to through its financial instruments are interestrate risk, liquidity risk and credit risk.
Interest rate riskAll financial assets and liabilities are non interest bearing except for the following:Cash assets at an average interest rate for the year of 4.85% (2012 0.83%)
Foreign currency riskThe Foundation is not exposed to fluctuations in foreign currencies
Interest rate riskThe Foundation’s exposure to interest rate risk, which is the risk that a financialinstrument’s value will fluctuate as a result of changes in market interest rates and willaffect future cash flows or the fair value of fixed rate financial instruments.
Page 17
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Floating rate instruments
Cash & cash equivalents 69,028 94,75169,028 94,751
Liquidity riskLiquidity risk arises from the possibility that the Foundation might encounter difficulty insettling its debts or otherwise meeting its obligations related to financial liabilities
The Foundation manages this risk through the following mechanisms:
- preparing forward-looking cash flow analysis in relation to its operational, investing andfinancing activities;
- obtaining funding from various sources- maintaining a reputable credit profile- managing credit risk related to financial assets- only investing surplus cash with major financial institutions- comparing the maturity profile of financial liabilities with the realisation profile of financial
assets.
Financial liability and financial asset maturity analysisWithin one year
Financial liabilities due for payment:Trade & other payables excluding annual leaveand deferred income - -Total expected outflows - -Financial assets – cash flows realisable:Cash & cash equivalents 69,028 94,751Trade & other receivables 596 6,735Total anticipated inflows 69,624 101,486Net (outflows) inflows on financial instruments 69,624 101,486
Foreign exchange riskThe Foundation is not exposed to fluctuations in foreign currencies following the closure of theNew Zealand denominated accounts during the year.
Credit riskExposure to credit risk relating to financial assets arises from the potential non-performance bycounterparties of contractual obligations that could lead to a financial loss to the Foundation.Credit risk is managed through maintaining procedures ensuring, to the extent possible, thatcustomers and counterparties to transactions are of sound credit worthiness and includesutilisation of systems for that approval, granting and renewal of credit limits, the regular monitoringof exposures against such limits and the monitoring of the financial stability of significantcustomers and counterparties. Such monitoring is used in assessing receivables for impairment.Credit terms are normally 14-30 days from the date of invoice.
Customers that do not meet the Foundation’s strict credit policies may only purchase in cash orusing recognised credit cards.
Page 18
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
Note 2013 2012$ $
Risk is also minimised through investing surplus funds in financial institutions that maintain highcredit ratings or in entities that the finance committee has otherwise cleared as being financiallysound.
The maximum exposure to credit risk by class of recognised financial assets at balance date,excluding the value of any collateral or other security held, is equivalent to the carrying value andclassification of those financial assets (net of any provisions) as presented in the balance sheet.
The company has no significant concentration of credit risk with any single counterparty or groupof counterparties.
Trade & other receivables that are neither past due or impaired are considered to be of high creditquality aggregates of such amounts are as detailed in Note 5
The Foundation does not have any material credit risk exposure to any single receivable or groupof receivables under financial instruments entered in to by the Foundation.
Credit risk related to balances with banks and other financial institutions is managed by thefinance committee in accordance with approved Committee policy. Such policy requires thatsurplus funds are only invested in counterparties with a Standard & Poor’s (S&P) rating of at leastA. The following table provides information regarding the credit risk relating to cash based on S&Pcounterparty credit ratings.
Cash and cash equivalents
A-1 rated 8,818 87,375A-1 rated 60,210 7,376
Price riskThe company is not exposed to any material commodity price risk.
Net fair values
Fair value estimationThe fair values of financial assets and financial liabilities are presented in the following table andcan be compared to their carrying values as presented in the balance sheet. Fair values are thoseamounts at which an asset could be exchanged, or a liability settled, between knowledgeable,willing parties in an arms length transaction. Fair values derived may be based on information thatis estimated or subject to judgement, where changes in assumptions may have a material impacton the amounts estimated, Areas of judgement and the assumptions have been detailed below.
Differences between fair values and carrying values of financial instruments with fixed interestrates are due to the change in discount rates being applied by the market since their initialrecognition by the company.
Page 19
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2013
2013 2012Net carrying
value Net fair value Net carryingvalue Net fair value
Financial assetsCash & cash equivalents 69,028 69,028 94,751 94,751Trade & other receivables 596 596 6,735 6,735Financial assets 2,440,480 2,440,480 1,798,924 1,798,924Total financial assets 2,510,104 2,510,104 1,900,410 1,900,410
Financial LiabilitiesTrade & other payables - - - -Total financial liabilities - - - -
The fair values disclosed in the above table have been determined based on the followingmethodologies:
(i) Cash and cash equivalents, trade and other receivables and trade and other payables areshort term instruments in nature whose carrying value is equivalent to fair value.
Sensitivity analysisThe following table illustrates sensitivities to the company’s exposures to changes in interestrates. The table indicates the impact on how profit and equity values reporting at the end of thereporting period would have been affected by changes in the relevant risk variable thatmanagement considers to be reasonably possible. These sensitivities assume that the movementin a particular variable is independent of other variables.
Profit EquityYear ended 28 February 2013 $ $+/- 2% in interest rates 13,621 13,621+/- 10% in investments 211,970 211,970Year ended 28 February 2012+/- 2% in interest rates 5,102 5,102+/- 10% in investments 163,455 163,455
No sensitivity analysis has been performed on foreign exchange risk as the company is notexposed to foreign currency fluctuations
12. Contingent Liabilities and Contingent AssetsThe company is not aware of any contingent liabilities that are in existence at the date of thesigning of this report. The Foundation has a contingent asset via an interest in the land andbuildings of the Estate of the late Dorothy Wheldon. The receipt of the proceeds of the bequest iscontingent upon the death of the life tenant. Given the uncertain timing of the receipt of thebequest, it is not possible to determine the fair value of the land & buildings as at balance date.
13. Events after the Balance Sheet DateThere has not arisen in the interval between the end of the financial year and the date of thisreport any item, transaction or event of a material or unusual nature, which in the opinion of theDirector’s will affect significantly the operations of the company, the results of these operations orthe state of affairs of company in future financial years.
Page 21
AUSTRALIAN AND NEW ZEALAND ASSOCIATION OF NEUROLOGISTS EDUCATION &RESEARCH FOUNDATION INC.
A.B.N. 21 303 168 080
INCOME AND EXPENDITURE STATEMENTFOR THE YEAR ENDED 28 FEBRUARY 2013
2013 2012
INCOME $ $
Donations 440,000 110,141Portfolio income 86,357 88,738Gain on disposal of investments 42,455 -Interest received 33,088 7,332
601,900 206,210
EXPENDITUREAuditor’s remuneration 2,635 2,400Awards 23,030 117,000Investment advisors fee 10,459 16,708Bank fee 138 -Brain school fees 15,000 20,000Loss on disposal of investments - 5,265
51,262 161,373
OPERATING PROFIT before Income Tax 550,638 44,837
This financial statement should be read in conjunction with the attached Compilation Report.